(Adds quotes, shares)
LONDON Dec 28 Bovis Homes said it would
not deliver the number of houses it originally expected in 2016,
after about 180 sales failed to complete before the year end,
resulting in a likely miss against market profit forecasts.
The British company said the number of homes built for the
year would be lower than previously anticipated at between 3,950
and 4,000 homes, as it experienced slower-than-expected build
rates during December.
Profit before tax for year ending Dec. 31 was expected to be
within a range of 160 million to 170 million pounds, depending
on final volume delivery, up from 160.1 million pounds in 2015,
Analysts were expecting on average profit to be 183 million
pounds ($225 million), according to Thomson Reuters data.
Shares in Bovis fell more than 4.0 percent in early trading,
making them the biggest faller on the FTSE 250 index.
Rival builders Crest Nicholson and Berkeley Group
were also hit by Bovis's unscheduled update, and were
down 1.7 percent and 1.6 percent.
"We have experienced slower than expected build production
across the group's sites during December, resulting in
approximately 180 largely built and sold private homes which
were expected to complete in 2016 being deferred into early
2017," the company said on Wednesday.
The builder said the average sales price of the homes it
completed in 2016 was expected to increase by around 10 percent
on 2015's 231,600 pounds, driven by improved mix and increased
underlying market pricing.
Britain's property market slowed immediately after the vote
in June to leave the European Union, but since then the economy
has fared better then most economists expected and house prices
have continued to rise.
($1 = 0.8139 pounds)
(Reporting by Paul Sandle. Editing by Jane Merriman)